Sustained bargain-hunting boosts capitalisation by N325b
For four consecutive sessions, sustained bargain hunting in the shares of blue-chip stocks pushed the Nigerian Stock Exchange (NSE) market capitalisation up by N325 billion.
At the close of trading yesterday, the All-Share Index (ASI) gained 622.09 absolute points, representing an increase of 1.54 per cent to close at 40,963.14 points.
Similarly, the overall market capitalisation value appreciated by N325 billion to close at N21.419 trillion. The uptrend was driven by price appreciation in medium and large capitalised stocks such as Seplat Petroleum Development Company (SEPLAT), Dangote Cement, MTN Nigeria Communications, Ardova Plc and NASCON Allied Industries.
Analysts at Vetiva Dealing & Brokerage said: “Following four consecutive sessions of closing in the green, we expect the market to close the week on a bullish note, as the domestic bourse continues to move higher amidst dominance of the bulls. However, with the index now trading in the overbought region, the possibility of profit-taking cannot be overruled.”
Market sentiment, as measured by market breadth, was positive as 49 stocks gained, relative to seven losers. Champion Breweries recorded the highest price gain of 9.82 per cent to close at N1.23 kobo.
NASCON Allied Industries followed with a gain 9.72 per cent to close at N17.50, while Japaul Gold and Ventures rose by 9.45 per cent to close at N1.39 kobo.
AXA Mansard Insurance went up by 9.42 per cent to close at N1.51, while Ardova appreciated by 9.25 per cent to close at N21.85 kobo. On the other hand, Courteville Business Solutions led the losers’ chart by 8.33 per cent, to close at 22 kobo.
Neimeth International Pharmaceuticals followed with a decline of 6.36 per cent, to close at N2.06, while Union Diagnostic and Clinical Services shed 3.13 per cent to close at 31 kobo.
The total volume traded rose by 72.9 per cent to 809.362 million shares, worth N8.906 billion, and traded in 6,706 deals. Transactions in the shares of Transnational Corporation of Nigeria topped the activity chart with 136.578 million shares valued at N130.187 million.
Mutual Benefits Assurance followed with 70.591 million shares worth N27.389 million, while Guaranty Trust Bank traded 68.993 million shares valued at N2.252 billion.
Lafarge Africa traded 61.852 million shares valued at N1.424 billion, while FBN Holdings transacted 44.534 million shares worth N329.473 million.